France: The cognac industry mobilizes against the threat of Chinese taxes

Approximately 800 people, accompanied by a hundred tractors, protested in front of the Cognac sub-prefecture, representing the General Union of Winegrowers for the AOC Cognac (UGVC), the National Interprofessional Cognac Bureau, and the Young Farmers' Union in Charente. The demonstration was sparked by China's investigation into wine-based spirits imported from the EU, in response to an EU investigation into Chinese subsidies for electric cars, which the industry fears could lead to a 35% tax on European 'brandies', primarily cognac. This could potentially cut off the sector from the Chinese market, which accounts for 25% of exports in value and up to 60% of turnover for some houses. The UGVC and other organizations have voiced their concerns to the French and European authorities, warning of job losses across the sector and the potential for industrial espionage. The protest was part of a larger stand against being a 'variable of adjustment' in geopolitical tensions, with the Armagnac sector also joining the demonstration.

In total, some 800 people gathered at midday in front of the Cognac sub-prefecture, accompanied by a hundred tractors, according to the Charente prefecture. "T'chine, T'chine, le Cognac trinque", "Barnier courbe l'é(é)chine", could be read on the banners of the procession that left from the headquarters of the General Union of Winegrowers for the AOC Cognac (UGVC), at the origin of the demonstration. "It is urgent. As soon as Europe has positioned itself on electric cars, the taxes will be definitive and will jeopardize the entire activity of the sector", fears Anthony Brun, president of the UGVC. In a context of trade tensions between China and the European Union (EU), Beijing launched an investigation in January into wine-based spirits imported from the European Union, in response to an investigation by Brussels into Chinese subsidies for electric cars. At the end of August, Beijing said it had found evidence of dumping, ruling out "for the moment" imposing temporary customs ...